Wal-Mart Company Analysis: Marketing Mix and Global Strategies

This report provides a comprehensive analysis of Wal-Mart, examining its line of business, areas of operation, and marketing mix strategies. The report delves into the product, price, place, and promotion elements of Wal-Mart's marketing mix, highlighting how these strategies contribute to its competitiveness in the retail industry. Furthermore, the report explores Wal-Mart's country-level strategies, specifically focusing on its operations in China, Japan, and Mexico. It analyzes the adaptation of Wal-Mart's business model and marketing approaches to suit the unique market conditions and consumer preferences of each country. The report concludes by summarizing Wal-Mart's success in creating a global retail business and its ability to adapt to diverse markets through effective marketing strategies and entry modes. The company's success is attributed to the company's capacity to analyze the linguistic, cultural, and economic differences in the host nations.

RUNNING HEAD: COMPANY ANALYSIS OF WAL-MART
Title: Company Analysis of Wal-Mart
Name of Student:
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1COMPANY ANALYSIS OF WALMART
Abstract:
The global trade refers to the exchange of services and goods between the countries that are in
the trade relations. The sum total of the export and import is generally counted as the total trade.
The present world trade value is approximately $38.96 trillion. Most of the goods traded globally
are the technologies and machines like the computers, electrical machineries, nuclear reactors
and others. However, not every company gets the benefit of operating a global trade. The
companies who have the proper resources to access the improved technologies and the
communication facilities have the privilege to set up a global structure. It is to be taken into
account that resources solely cannot help a global business to flourish in the foreign lands. The
companies that have the flexibility of adopting the culture and customs of the host nations enjoy
a profitable and a successful international trade. The current research is based on the analysis of
the Wal-Mart company, the company under fortune 500 that has a vast global presence. After
analysing the line of business the company adheres, the research focuses on the marketing mix
strategy taken by the organisation. The research then analyses the differences in the marketing
strategy the company applies in various host nations.

2COMPANY ANALYSIS OF WALMART
Table of Contents
Abstract:...........................................................................................................................................1
Introduction:....................................................................................................................................3
Line of Business:.............................................................................................................................3
Areas of Operation:..........................................................................................................................4
Marketing Mix of Wal-Mart:...........................................................................................................4
Country Level Strategies:................................................................................................................7
Conclusion:......................................................................................................................................8
Reference List:.................................................................................................................................9

3COMPANY ANALYSIS OF WALMART
Introduction:
Companies in present era are tending to become global in their approach considering the
profitability in having a global presence (.Lenzen. Moran, Kanemoto, & Geschke 2012) The main
concept that underlines the essence of global trade is the concept of comparative advantage
which states that some goods are particularly produced in some particular countries at a cheaper
rate than the other. This benefit in the cost opportunity influences the global trade (Brown,& Dant,
2014).
Waymart is an American Multinational corporation who operates the chain of grocery
stores, hypermarkets and discount department stores. The headquarter of the company is based at
Bentoville, Arkansas. The operating division of Wal-Mart is categorised into four sections
namely the Wal-Mart US, the Wal-Mart International, Sam’s Club and Global ecommerce. The
hypermarket, which is known as the Wal-Mart Supercentres offers the service of General
Merchandise and the supermarkets of full service nature. The offerings of these sections vary
from baked goods, poultries, meats and others. The Discount Stores of the Wal-Mart offers the
general merchandise as well as limited groceries. These stores are in general branded as the
pharmacy or the garden centre. the Neighbourhood market of Wal-Mart is the chain of the
smaller grocery stores (Ellickson 2016)..
Line of Business:
The line of Business in the context of an organisation is the term, which refers to the
product, or service that the organisation offers or manufactures (Trumbly, & Aerdts,2012). . The
term of line of business is also referred to the internal unit of business corporate. The Wal-Mart

4COMPANY ANALYSIS OF WALMART
is an American Multi-corporation that uses the retailing line of business. Retail is considered to
be the process by which the company sells consumer services and /or goods to the customer by
means of multiple channels of distributions with the aim of earning profit. Wal-Mart generally
operates their retailing operations through offline stores. In recent times, however, it has opened
some online selling sites.
Areas of Operation:
The four countries where Wal-Mart has its operations are China, US, Japan and Mexico.
The company operates in these areas either directly or through their subsidiaries. The operational
tactic and strategy are also different in the different countries they operate in.
Marketing Mix of Wal-Mart:
The Wal-Mart has the approximate revenue of $500 billion and has a total of
11,700 stores that are being operated worldwide (Bonanno, & Goetz, 2012). The major competitor
of the company is Amazon. Among others, the noted ones are Homedepot, Target, Costco
Worldwide and Tesco. However, Wal-Mart has a strong marketing mix strategy that has enabled
it to sustain itself and face the competitors.
Product: the reputation of Wal-Mart is typically because of their retailing in the multi
brands that offers to the consumer an intense variety of products in their stores. Wal-Mart is
basically a combination of all the required departments which mainly include movie books and
music, electronic and office furniture and patio, clothing, shoes and jewelleries, households and
pets, food, health and beauty product, sports and fitness product, gift and personalised shop,
pharmacy etc. The individual department of Wal-Mart contains variety of products like cell

5COMPANY ANALYSIS OF WALMART
phones, tablets, computers, wearable techs music video, electronics, home automation, kitchen
and dining, vacuum and floor care etc. The retail service is fulfilled by the means of E-
commerce as well as through departmental stores the product element of Wal-Mart mainly
attracts the consumer by means of providing effective and convenient services. Sales personnel
operating in the stores of Wal-Mart are trained especially so that they are able to assist the
shoppers to find the goods they are looking for. The corporate culture of Wal-Mart has a great
role to play to support the strategic management of the business.
Price: In the pricing strategy Wal-Mart has applied an everyday low price strategy in
order to meet the revenue model of the company. The main purpose of the incorporation of this
strategy is to attract the large sector of the consumers so that high sales volume can be achieved
and in turn the company ensures a profitability despite the very narrow profit margin. This
thinner profit margin in reality adds up to the cost leadership generic strategy of Wal-Mart that
gives the company a competitive advantage (Xu,, Xu and Liu, 2014). In the marketing mix of Wal-
Mart the pricing strategy mainly contributes to the competitiveness of the company in the whole
retail industry. Moreover Wal-Mart makes use of market oriented pricing strategy for their
various goods. The flat rate subscription pricing strategy is mainly incorporated for involving the
purchasers more into the E-commerce website purchasing. Wal-Mart uses the tagline of “Save
money. Live better”. This depicts the amount of importance of the company puts in their low
pricing strategy.
Place: Wal-Mart works 11,700 stores in 27 nations and utilizations both the offline as
well as online store and offer various items to its clients.

6COMPANY ANALYSIS OF WALMART
Wal-Mart Discount Stores: Smaller than a Supercenter, markdown stores have the benefits of
utilising 200 partners and offer attire, toys, gadgets, wellbeing, , home decorations, and
excellence helps, equipment and more in around 106,000 square feet of open, and are vibrantly
decorated with lights in the space (Schuetz, 2015)..
Wal-Mart Supercenters: Wal-Mart Supercenters allows the offerings of a one-stop
shopping experience by joining a supermarket with crisp produce, store, bread kitchen and
hardware, clothing, home decorations and toys. Most Supercenters remains open for 24 hours,
and sometimes incorporates in the areas of operation, the speciality shops, like hair and nail
salons, banks, cafés, or movie shops or restaurents.
Wal-Mart Neighbourhood markets: Wal-Mart Neighbourhood Markets were set up for
the first time in 1998 as a smaller duplicate structure for networks that specially needs the drug
stores, reasonable goods and product. The spread of the store is roughly 38,000 square feet and
utilizes up to 95 partners (Michelson 2013). Wal-Mart Neighbourhood Markets offer grocery
products, meat and dairy items, bread kitchen and store things, family unit supplies, wellbeing
and magnificence helps, and a drug store.
Wal-Mart Express stores: Wal-Mart Express was a chain of littler markdown stores with
a scope of administrations from food supplies to check getting the money for and gas
administration. The idea was centered on communities regarded incapable to help a bigger store
and enormous urban areas where space was including some hidden costs.
Promotional Mix or Marketing Communications Mix: the promotional mix o the
company follows the strategy of advertisement, promotions through sales, personal sellings and
maintaining a good public relation. The advertisement of the company takes place through TV

7COMPANY ANALYSIS OF WALMART
Commercials, newspaper and websites (Gordon 2012). The company promotes sales in the form
of discounts and special deals to attract the customers. The company also uses the strategy of
personal selling and discounts in the store where the shoppers are persuaded by the sales
personel to try new things. In the public relation sector, the company uses the method of press
release, programmes promoting charity and the programmes whereby the company inform the
consumers regarding the programs strategies and the CSR. ( Lenzen Moran, Kanemoto, Foran &
Geschke, 2012).
Country Level Strategies:
In china Wal-Mart has been one of the first big international brand that penetrated the
market Wal-Mart saw a promise of big profits because of the emergence of the exploding middle
class of the country (Yue, Rao,, & Ingram,2013). The first store of Wal-Mart was opened in China
in 1996 and in the intervening years the number of stores increased to 424. The market of Wal-
Mart in China has a separate operational strategy that was emerged out of the struggle that the
company had to face to dominate in China in the fashion of US. Initially Wal-Mart seemed to
have failed to understand the market choice of the community and thus resulted in middling of
sales. Unlike US Wal-Mart has made the grocery to be the backbone of their strategies in China.
The company has analysed that in a country like China where there are plenty of technological
industries which are solely indigenous the sales of gadgets and electronics will not be a
successful one (.Brown & Dant,2014). However the demand of grocery delivery is at the highest
level in China that requires effective logistical investment. The shop structure and business
structure in Japan is quite similar to that of the US market of Wal-Mart. At present Wal-Mart has
taken the full control of chain of Japanese grocery (.Magnier-Watanabe & Lemaire, 2018)

8COMPANY ANALYSIS OF WALMART
Walmart operates in a similar fashion like their US stores in Japan in their strategy of keeping
the supermarkets clean and organised. The main strategy used by Wal-Mart in Mexico by
relaunching the whole chain of retail stores with a larger assortment and lower pricing strategy
which is an exception from the US market. The multi format strategy that is being used in
Mexico is done particularly to capture all strata of consumer having different needs. Bodega
Aurrera express is the fastest growing format of the company in Mexico which is specially
designed to cater to the urban areas. Mi Bodega Aurrera has a function of serving to the rural
towns.( Alcácer, Agrawal, & Vaish 2013).
Conclusion:
Wal-Mart had been an exemplary organisation that has been successful in creating a
global retail business. This is because, they have been able to analyse minutely the linguistic,
cultural and economical differences in the host nations and have also been able to use the perfect
marketing strategy and the modes of entry to penetrate the market. Wal-Mart had proved itself to
be a successful retailer in US and shows great prospects in growing their markets in Mexico,
China and Japan> the effective entry mode gives the company a great competitive advantage
over other retailers by catering to the cultural and economical orientations of the host countries
Wal-Mart have been able to satisfy a large number of customers.

9COMPANY ANALYSIS OF WALMART
Reference List:
.
Alcácer, J., Agrawal, A., & Vaish, H. (2013). Walmart around the World.
Bonanno, A., & Goetz, S. J. (2012). WalMart and local economic development: A
survey. Economic Development Quarterly, 26(4), 285-297.
Brown, J. R., & Dant, R. P. (2014). The role of e-commerce in multi-channel marketing strategy.
In Handbook of Strategic E-Business Management (pp. 467-487). Springer, Berlin,
Heidelberg.
Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix. Australasian Marketing
Journal (AMJ), 20(2), 122-126.
Guan, D., Su, X., Zhang, Q., Peters, G. P., Liu, Z., Lei, Y., & He, K. (2014). The socioeconomic
drivers of China’s primary PM2. 5 emissions. Environmental Research Letters, 9(2),
024010.
Lenzen, M., Moran, D., Kanemoto, K., Foran, B., Lobefaro, L., & Geschke, A. (2012).
International trade drives biodiversity threats in developing nations. Nature, 486(7401),
109-112.

10COMPANY ANALYSIS OF WALMART
Magnier-Watanabe, R., & Lemaire, J. P. (2018). Inbound foreign direct investment in Japan: A
typology. International Business Review, 27(2), 431-442.
Michelson, H. C. (2013). Small farmers, NGOs, and a Walmart world: Welfare effects of
supermarkets operating in Nicaragua. American Journal of Agricultural
Economics, 95(3), 628-649.
Mun, L. Y., & Yazdanifard, R. (2012). Walmart success in Mexico, Canada and China: global
expansion, strategies, entry modes, threats and opportunities.
Schuetz, J. (2015). Why are Walmart and Target next-door neighbors?. Regional Science and
Urban Economics, 54, 38-48.
Xu, L.X., Xu, Q. and Liu, X., 2014. Wal-Mart and Carrefour's Supply Chain Management
Strategies in China. International Journal of Business and Management, 9(7), p.155.
Yue, L. Q., Rao, H., & Ingram, P. (2013). Information spillovers from protests against
corporations: A tale of Walmart and Target. Administrative Science Quarterly, 58(4),
669-701.